Stock Market Commentary for Friday Trading

September 13, 2019

Stock Market Commentary for Friday Trading: The benchmark indices on Friday opened lower on Friday tracking the mix market sentiment in Asian Markets. Yes Bank, HDFC Bank shares emerged among the biggest losers, Tata Motors, Heromotocorp shares were among the top gainers.  The headline Sensex and Nifty came under pressure in the afternoon trade on Friday. The Sensex was down 25 points to 37090, while the Nifty was trading below the 11000 mark at 1.00 pm.

Reliance Capital

Reliance Capital said it would receive Rs 6000 crore through Reliance Nippon’s offer for sale and transaction with Nippon Life. Entire proceeds of Rs 6000 crore would be utilised for reducing debt.

NBFC Default

Worries over the crisis in the NBFC sector grew stronger after Altico Capital India defaulted on the interest payment obligation on External Commercial Borrowing availed from the UAE-based Mashreq bank.The company in its regulatory filing, said it defaulted on the interest payment of Rs 19.97 crore.

Gravita in Commentary for friday trading

Shares of Gravita India rallied 5 percent intraday after the increase in production capacity of lead recycling plant in Ghana. Gravita India informed exchanges that its step down subsidiary Recyclers Ghana in West Africa has enhanced the production capacity of its existing lead recycling plant from 6000 MTPA to 12000 MTPA.

PI industries

“PI Industries has executed an offer with promoter Isagro SpA (a company incorporated in Italy) for acquisition of Isagro Asia, who is engaged in contract manufacturing, local distribution and exports of agrochemicals,” the agri-sciences company said in its BSE filing.

Commentary for friday trading, SRF Share

Shares of SRF jumped 2 percent intraday after IDFC Securities has initiated coverage on the stock with an outperform call and target price at Rs 3347 per share, implying 23.5 percent potential upside from current levels.

At the closing market Sensex was trading 280 points up at 37384 and Nifty was trading 97 points up at 11080. BPCL and IOC were the top gainers and India bulls housing finance and Sunpharma were the top losers. The most active stock of the day was Yes Bank.

Manmohan Singh Advices To Modi Govt on Recession

September 13, 2019

Manmohan Singh Advices Modi Govt on Recession: In an scathing attack on Narendra Modi government , Former Prime Minister Mr Manmohan Singh have said that it may take about years to recover the economy from the slowdown. He was speaking with the Hindu Businessline and Dainik Bhaskar. Singh also called for the structural reforms to address the slowdown and also blamed government that it is not focusing on the economy and wasting the peoples mandate.

Manmohan Singh Advices Modi Govt

“Already, a lot of time has been lost. Instead of wasting its political capital by adopting a sector-wise piecemeal approach, or on monumental blunders like demonetisation, the time has now come for the government to carry out the next generation of structural reforms and promote sectors that can generate mass jobs,” he added. He also said that government have not yet realized the slowdown of the economy. He was worried about the condition of the economy.

Rationalize the GST rates

He also gave some measures to tackle the economy. In this blog we will discuss about the measures he given to government. The very first measure he given to the government was to Rationalize GST. He reiterated that two government policies demonetization and flawed GST implementation have lead to the slowdown. Since the demonetization harm cannot be fixed the former PM advised to rationalize the GST rates even if it lead to the short term loss in revenue.

Increase the consumer demand

The second measure he added that government needs to find the innovative ways to increase the consumer demand, which is a reason behind the slowdown. The slowdown could be a prolonged affair if the government fails to boost the consumption. He also gave example of fall down of sell of 5 Rs biscuits.

Fix Labour-Intensive Sectors

While speaking about recent slowdown in automobile and retail sector, he said that it is an early warning to government. The government should be cautious about this slowdown. The automobile industry employs a total of over three million people, out of which more than three lakh have lost their jobs. The figure could go up to 10 lakh given the current mood of the sector, according to industry trackers. Real Estate, which employs lakhs of daily wage labourers, is also going through a period of acute slowdown, which needs to be immediately addressed.

Manmohan Singh Advices Modi Govt to boost Liquidity

While Dr Manmohan singh advices to Modi govt., he also depicted liquidity crunch is another trigger behind the economic slowdown. He said the liquidity crunch since 2018 have added to the slowdown. He also added not only PSU banks but the NBFCs are also suffering.He also pointed that this crisis is man made crisis. He also explained how the demonetization of the Indian currency has lead to  this economic slowdown. Government should search measures to boost the liquidity .

Recognize the export opportunities

Former prime minister advised the government to search various measures to increase the export opportunities. He also said the government to be aware of the trade tussle between US and China as it may put an impact on Indian foreign trade as well . He also talked about the export roadmap that could be beneficial for India.

Evergreen Types of Mutual Funds, You Must Know

September 13, 2019

Evergreen Types of Mutual Funds, You Must Know: Thinking to invest in mutual funds? So you want to know in which mutual fund you should invest. What are mutual funds? Mutual fund offers a wide variety of option available for wide variety of investment choices. In this article I am trying to make you informed about various types of mutual funds available.

Money Market Funds

A money market fund is a kind of mutual fund that invests only in highly liquid vehicles such as cash, cash equivalents, and credit rating debt-based securities. This funds offer high liquidity with considerably low level of risk. A money market fund may invest in Bankers Acceptance, Certificate of Deposits, Commercial Paper, Repurchase agreements, and Treasury bills. Returns from this investment depend upon applicable market interest rates. The primary purpose of the mutual funds is to provide a safe medium to invest.

Fixed Income Funds

A fixed income fund is a kind of mutual fund that invest in such a security that pays fixed interest payment securities. These funds invest in government funds, investment grade corporate bonds. The aim of such a fund is to provide regular income to the investor of such funds. High yield corporate bond funds are quiet riskier than government securities.

Equity Mutual Funds

Equity mutual funds invest in Stock Market. These kinds of fund grow faster when compared to the money market or fixed income funds. In this kind of funds there is a risk that you can lose money. If you want to go with higher risk and willing to get higher return then you can go with this kind of funds. Equity funds also provide you tax relaxation. Also at redemption of equity share you get capital gains. Such a capital gain will be taxable in hands of investor.

Balanced Mutual Funds

Balanced funds are more commonly known as hybrid funds. These type of funds invest both in equity and debt fund in an appropriate proportion. This could be conservative or aggressive. The primary objective of the balanced fund is that it may provide you diversification. Also the hybrid fund could be rebalanced periodically. Balanced mutual funds offers risk adjusted returns.

Intraday market strategies for beginners

September 12, 2019

Intraday market strategies for beginners: Day trading is act of buying and selling in the same day. This type of trading takes the advantage of small moves in the market. The trading provide lucrative profit if the trade goes in favor, but it provides huge loss if the trade goes opposite side. Generally, new comers in the market make loss in the market. So in this blog I am trying to provide various strategies which should be followed when they start today trade.

In intraday market strategies the first thing need to be remembered is that Knowledge is power. Not only about the particular stock market but macroeconomic things also need to be cared. Then, know your risk appetite and work according to the same. Remember it ‘higher the risk and higher the return’. Do homework and make the list of stock you want to trade. Study fundamentals of that stock and keep an eye on the same.

Intraday Market Strategies for new traders

As a beginner one should try to avoid the stock with lower price. Because low price stock lack the liquidity. Forget the time as well as your money. Just follow the discipline. When going to stock trading in intraday market one should trade with proper stop loss. Putting proper stop loss make you limit your risk.

While trading in intraday market we assume a high risk in accordance with high profit expectation. Trading with proper target and stop loss helps you to limit your risk and return. The day trading requires your time, you need to do proper research and home work before applying your hard earned money.

As a beginner new comer should start with small amount. Tracking market and less number of stocks be easier when you start small. A person can leverage the capital to earn maximum profits because in the case of intraday trading it can be done by paying small margin.

One of the most important thing about the intraday market is it does not block your amount for long time. Your amount is cleared in the same day. Also output of day trading occurs in the same day you can trade. In intraday it becomes clear that whether you have got profit in the trade or you have made loss. Also day traders take advantage of both falling market as well as rising market.

Most of the traders are attracted by less market brokerage. Day Trading if done professionally can be taken as a home based business for House wives, Retired Persons, disabled persons. Day trading Just requires a Computer, Capital and Internet to the trading. It can get more returns on investment comparing with Bank FD, Postal Saving etc Many a times the stock traders earn a profit within ten to sixty minutes. Thus, they do not have to sit for a very long time in front of the terminal of stock trading.

Top gainers and losers of the day

September 11, 2019

Top gainers and losers of the day: In this blog we are about to discuss about the top gainers and losers of the day. Top gainers are the stocks which changed the most in the positive direction and Top losers are the stocks which changed the most in the negative direction.

Top Gainers: It was a wow day for Yes Bank. Yes Bank Ltd shares rallied nearly 20% in intraday trade on Wednesday amid speculations that there may be a change in the bank’s shareholding as various stake sales report circulated in the media.The stock rallied about 12% intraday making it a top gainer. The top 5 gainer of the day are given below:

  1. Yes Bank: Yes bank was the top gainer today. Yes bank closed at 70.80. It changed about 12% in the intraday. The stock gains volume of 299014488 today.
  2. Tata Motors: Tata motor gained second most in todays trade. Tatamotor closed at 133.90, changed about 9.84% and attracted the volume of 84037395.
  3. Eicher Motors Ltd: Eicher motor is also among todays top gainer. It gained 5.28% and closed at 17061.95. The stock gained volume of 218861.
  4. Maruti Suzuki India Limited: Maruti closed at 6580 and change of 3.86%.It has closing volume of 2491876.
  5. JSW steel Ltd: JSW steel Ltd 227.80. It gained 3.78. And gives Trading volume of 11404488.

Top Losers:  It was a bad day for ONGC. It became top loser today. The stock was down 4 Rs and at closing it was trading at around 125 Rs.  The possible reason of fall in ONGC share could be after a major fire broke out at the company’s Uran plant in Maharashtra on September 3rd.

  1. Oil & Natural Gas Corporation Ltd: ONGC was the top loser today. The stock closed at 125.35 and gave change of 3.13%.And at the closing time the volume was 11398614.
  2. Wipro Ltd: Wipro Stock also was in the top loser today. At the time of closing 248.15. The stock changed 2.91%. The stock attracted volume of 9798937.
  3. Gail India Ltd: GAIL was the third among the top loser. GAIL was trading 2.80% down at 128.45.The volume gained by GAIL was 12366160.
  4. HCL Technologies Ltd: HCL technologies was among the top loser today. It gained volume of 2662724. It Closed at 2.71% down,and the closing price was 1055.00
  5. Zee Entertainment Enterprises Ltd: ZEEL was among the top loser today and was at 5th position. The stock gained volume of 4379274. It changed -2.55% today and closed at 353.70.

 

Top 10 Stock Market Amazing Facts, Must Know

September 11, 2019

Top 10 Stock Market Amazing Facts: Most of the people when enter into the stock market they want to know each and every fact about the market. Here are the facts given, you must not be aware of them. Read the following facts:

  1. Bombay Stock Exchange has highest number of listed companies in the world. Approximately 5000 companies are listed in the BSE. NSE of India has around 1750 companies.
  2. The most expensive stock in world is the Warren Buffet’s Hathaway, Class A, which is priced at USD 213330 per share. The reason for such a high price is that the company doesn’t splits the shares.
  3. Amsterdam Stock Exchange is the oldest stock exchange in the world. It was established in 1602 by Dutch East India Company. The company deals with printed stocks and bonds.
  4. Only 2% people in India goes into investment in equities. People in India are more attracted to invest in Gold banks and real state.
  5.  “Bear” and “Bull” are thought to be originated from the way of attacking by each animal, with the bull thrusting its horn up in the air, while a bear swiping downwards.
  6. Historically, on an average the market declines mostly in the month of September. The three leading indicator DJIA (Dow Jones), S&P 500 (Standard and Poor) and NASDAQ have seemed to be performing poor  in September. One of the reasons for this is that the trading declines in summer as the investors take time for vacation and once they return to work, they exit positions they had build up.
  7. October is considered to be bad luck month as the two worst stock market crashes in history occurred in this month. The first one occurred in 1929 with a 25 percent declined in the share prices, and by 1932 the value of shares was just 20% of the value of shares in 1929. The second crash occurred in 1987 October when the stock market declined by one fourth.
  8. In the year 2006, one third of the all stock traded in US and European Union was traded through algorithmic trading. This trading is heavily reliant on mathematical formulas, algorithmic trading based on computer programming. And by 2008 about 80% trading was done by algorithems, however it decline later due to trading volume.
  9. Till the year 2000, markets in US, London and Paris were trading on prices which were in fractions and not in decimals. But after year 2000, this changed and all these markets moved to decimals. This made it easier for an average investor to better understand the value of stocks.
  10. The Big Board is the nickname of the New York Stock Exchange. The NYSE is the biggest stock exchange in the world, and the largest in the United States. The market opened for the first time in 1792.

We hope this stock market amazing facts will have added to your knowledge.

When Systematic Investment Plan can harm your portfolio?

September 10, 2019

When Systematic Investment Plan(SIP) can harm your portfolio?: Systematic Investment Plan (SIP) is an investment route which is offered by Mutual Funds wherein one can invest a fixed amount in any mutual fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum investment. The installment amount could be as little as INR 500 a month and is quite similar to a recurring deposit. It’s convenient as you can give your bank standing instructions to debit the amount every month.

How SIP gained Popularity

SIP has gained much popularity among Indian MF investors, because it helps in investing in a disciplined manner without worrying about market volatility and timing the market. Systematic Investment Plans offered by Mutual Funds are easily the best way to enter into the world of investments for the long term.

Inflows through Systematic Investment Plan

As per data from the Association of Mutual Funds in India (AMFI) the inflows from SIPs at 8,300 crore in July 2019 and the industry added 9.54 lakh SIP accounts on an average each month during the financial year 2019-20. But here we want to discuss when one should stop the investment through SIP ie Systematic Investment Plan.

When to Check Systematic Investment Plan

  • Stop your SIP when your goal of investment is nearer. Every investment have some goal associated with it. The same is with the investment through SIP. It should be discontinued at this stage because it eradicates the chance of losing your hard earned and accumulated money.
  • Stop your SIP when it is diverting from your goal. If the outcome of your investment is skewing then it is time to rethink about the SIP plan. One should be very alert when directly or indirectly investing in the stock market and keep focus on asset allocation.
  • Stop the SIP when the fund in which you have invested has been underperforming. SIPs make it operationally simpler for you to stay with your investments but it may also lead to carelessness in evaluating the performance of their funds.  Periodic monitoring of fund is required.
  • Stop the SIP when the risk and return of the investment is varying. If the fund moves up beyond your risk appetite you must stop the fund SIP as soon as possible.
  • There comes time in life when your financial condition becomes worse. If the financial condition become weak then you can stop your SIP.

Concluding Words

SIP is a facility that helps you do better with your investments in terms of staying with an investment plan without getting distracted by current market sentiments. But you should evaluate it periodically and take a call on how to use it so that it can be adjusted to reflect your current situation and work in your favour.

Today’s Market Commentary Analysis; Lupin got approval for the drug

September 9, 2019

Today’s Market Commentary Analysis: It was a negative start for the Indian indices with Nifty below 10,900. In morning, the Sensex was down 151 points at 36830, and the Nifty down 42 points at 1090. About 375 shares have advanced, 369 shares declined, and 55 shares are unchanged.Asian Paints Indiabulls Housing, UPL and Sun Pharma and Cipla, are among major gainers on the indices, while losers were Maruti Suzuki, Tata Motors, Eicher Motors, M&M, Hero MotoCorp, HDFC Bank, Kotak Mahiondra Bank, Axis Bank and JSW Steel, Yes Bank, TCS and Bajaj Finance. Among sectors, except pharma other indices are trading lower led by auto, metal, energy, bank and IT.

L&T in Today’s Market Commentary Analysis

L&T said buildings and factories business has secured a prestigious residential project from the City and Industrial Development Corporation of Maharashtra Limited (CIDCO) to construct 23,432 dwelling units with on-site infrastructure works at various locations in Navi Mumbai.

Automobile News

Passenger car sales in August 2019 fell by 41.1 percent to 1.15 lakh units and 2-wheeler sales declined 22.2 percent to 15.1 lakh units compared to same month last year. Commercial vehicle sales dropped 38.7 percent to 51,897 units​ and passenger vehicle sales plunged 31.6 percent to 1.96 lakh units YoY.

JPMorgan in News

JPMorgan Chase & Co is close to winning the lead advisory role for Saudi Aramco’s initial public offering, a source familiar with the situation said on Sunday. Reuters reported last month that Aramco formally asked major banks to submit proposals for potential roles in its planned IPO. A final decision is likely to come later this week, the source told Reuters, asking not to be identified.

Lupin in News in Today’s Market Commentary

Pharma major Lupin said it has received approval for its Ethacrynic Acid tablets USP, 25 mg, from the United States Food and Drug Administration. Lupin’s Ethacrynic is the generic version of Edecrin tablets of Bausch Health Americas, Inc.The drug is indicated for treatment of edema when an agent with greater diuretic potential than those commonly employed is required.

Market at Closing

Sensex Closed 163 points up at 37145 and Nifty Closed at 56 points up at 11003. Among Nifty50 stocks, Yes Bank, UPL, Maruti Suzuki, L&T and Kotak Mahindra Bank were top gainers, rising 2-4.5 percent whereas HCL Technologies, Infosys, Tech Mahindra, Eicher Motors and Bajaj Auto were losers. Among midcaps, RBL Bank, Blue Dart, NBCC (India), GE T&D India and Muthoot Finance rallied 4-7 percent whereas Aditya Birla Finance, Ajanta Pharma, Glenmark, Vakrangee and Torrent Pharma slipped 2-3 percent.

Why Economic Census to be held every three years in India?

September 9, 2019

The Census to be held every three years: Indian economic census is the census of the Indian Economy that counts entrepreneurial units in the country which are involved economic activities of either agricultural or non-agricultural sector which engaged in production and/or distribution of goods and/or services not for the sole purpose of own consumption . The census provides detailed information on operational and other characteristics such as number of establishments, number of persons employed, source of finance, type of ownership etc. This information used for micro level/ decentralized planning and to assess contribution of various sectors of the economy in the gross domestic product (GDP).

Who collects the data?

It is a periodic exercise conducted by the MoSPI to collect disaggregated information on various operational and structural aspects of all economic establishments in the country. It is meant to provide insights into geographical spread of economic activities, ownership pattern, persons engaged, and sources of finance of the establishments engaged in economic activities across the country.

How the census data collected earlier?

The previous censuses have been conducted in paper schedules through enumerators engaged by State governments. In the latest census, data will be collected, validated and disseminated through advanced IT usage, which is expected to reduce the lag in finalisation of results, as well as improve accuracy and coverage of the data.

Dependency on Data for Economic Census

To assess the country’s economic performance, economists and statisticians had to depend on data which was dated. But now, the Ministry of Statistics and Programme Implementation (MoSPI) has taken upon itself to make available the latest data and come out with the economic census every three years.

What the secretary says about Economic Census?

Pravin Srivastava, Secretary MoSPI, and Chief Statistician of India (CSI), said: “We are pursuing a strategy to move all data-capturing activities on a digital mode/platform. This facilitates faster collection and capturing of information and improved quality with in-built validation checks.”

The move has been initiated with the work on the seventh census. “The data being collected in the economic census undergoes three levels of scrutiny, all of which is through the mobile application developed exclusively for the economic census,” he told BusinessLine.